UK Offshore Wind Programmes addressing the barriers. Brussels

Transcription

1 UK Offshore Wind Programmes addressing the barriers Brussels 14 th March 2011 Dermot Grimson Head of External Relations, Policy & Planning 1

2 The Crown Estate Is a landowner Is not a regulator Is a public body The Crown Estate Act 1961 Is not part of Government but works closely with Government, statutory bodies etc. Annual surplus is passed to the UK Government Urban Estate Rural Estate Marine Estate

3 Energy in the Marine Estate Gas Storage CO 2 Storage Wave and Tidal Offshore Wind 3

4 The MaRS programme commenced early in 2008 and now has more than 450 layers of data. Supporting the identification of potential areas for offshore wind and other marine activities Identifying data constraints and weightings Building understanding of marine policy and sustainability Links the Crown Estate s marine spatial planning and marine business strategy Building financial and risk modeling capability

5 UK Offshore Wind Programmes Rounds 1&2 1.3 GW operational 7.6 GW in development 1.5 GW extensions Scottish Territorial Waters 5.3GW in predevelopment Round 3 32GW in development Total: 47.7GW R3 focus is Renewable energy targets Jobs Scale and programme

6 UK Offshore Wind Market Opportunity for generating capacity from all current leasing rounds Annual(MW) 12,000 10,000 8,000 6,000 4,000 2, Year Future Rounds 60,000 50,000 40,000 30,000 20,000 10,000 Information taken from Developers updated Dec 2010 forward plans and projected capacity 0 Cumulative (MW) Round 3 Scottish Territorial Waters Demo Sites Round 1 and 2 (including extensions) Cumulative Installed MW

7 Round 3 Programme Update Round 3 programme delivery curves 35,000 Capacity (MW) 30,000 25,000 20,000 15,000 10,000 5,000 MW of Grid Connection Offers Accepted MW of project approvals MW of Draft ES issued for consultation MW of Planning Applications MW of KPC granted MW of Leases Signed MW of Project Construction started MW of Projects Commissioned Year Information taken from Developers updated Dec 2010 forward plans and projected capacity 7

8 Extensions and Demonstration Sites The objective is to provide a bridge for the supply chain from Round 2 through to Round 3 and ensure that technology development can be accelerated: Three operators selected to extend four sites, creating an additional 1.5 GW. Two projects offered increased capacity within current site areas for a total of 340 MW. Four sites with a total of 35 test pads awarded to developers 8

9 Strategic Challenges to Programme Delivery Health & Safety Rapid sector growth, further from shore Supply Chain & Skills Competing markets, capacity, early investor confidence, delivering infrastructure investment and OEMs, leadership on skills Levelised Cost of Energy Project Economics & Financing Planning & Consents New Planning Act, revisit IPC and NPS s, untested new processes and teams, funding aviation solutions, MCZ uncertainty Grid & Technology Coordinated offshore devt, OFTO regime, charging, technical standardisation, risk and perception Consented projects reaching investment hurdle rates, access to construction finance, facilitating refinancing when operational 9

10 Turbine Installation Vessels Van Ord Swire Blue Ocean MPI: Discovery FOW: Bold Tern (X2) RWE: 2 vessels Beluga Hochtief MPI: Adventure Seajacks: Zaratan A2SEA: Sea Installer 10

11 Ports and Harbours Bremerhaven: Then Humber Belfast? Bremerhaven: Now 11

12 Supply Chain Investment: 2.2 billion Publically stated investment intent in supply chain Towers Substructures Turbine HVDC/Cables Ports Generators/Blades Vessels Demonstration Sites Source The Crown Estate: Figures in M 12

13 Offshore wind investors: global attractiveness index China UK US Germany Italy France Ireland Sweden Netherlands Belgium S Korea Denmark Source: Ernst and Young Country Attractiveness index

14 European Context Average percentage contribution to offshore wind capacity based on 2010 EWEA and WWEA projections

15 Supporting Information 15

16 Photo Courtesy Vattenfall Thank you